4 Woodsman Company sells a product for $220 per unit. The variable cost is $120 per...

4

Woodsman Company sells a product for $220 per unit. The variable cost is $120 per unit, and fixed costs are $520,000.

Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $202,800.

a. Break-even point in sales units		units
b. Break-even point in sales units if the company desires a target profit of $202,800		units

Expert Solution

a. Break-even point in sales units	5200	units
b. Break-even point in sales units if the company desires a target profit of $202,800	7228	units

Requirement A working

A	Sale Price per unit	$ 220.00
B	Variable Cost per Unit	$ 120.00
C=A x B	Unit Contribution	$ 100.00
D	Total Fixed cost	$ 5,20,000.00
E=D/C	Breakeven point in units	5200.00

Requirement b working

A	Sale Price per unit	$ 220.00
B	Variable Cost per Unit	$ 120.00
C=A x B	Unit Contribution	$ 100.00
D	Total Fixed cost Plus desired profit	$ 7,22,800.00
E=D/C	Breakeven point in units	7228.00

ekkarill92 answered 4 months ago

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